Central Bank of Egypt to issue $850m US dollar-denominated T-bills today
According to Daily News, The Central Bank of Egypt (CBE) will issue today US dollar-denominated treasury bills (T-bills), worth $850m for a year, due on 2 January 2024.
The CBE uses the proceeds of this T-bills bid to pay the value of a previous bid submitted by the bank on 4 January 2022 at a value of $852.9m.
The Central Bank of Egypt had received 22 offers at a value of $1.140bn to cover a similar bid it put out on 5 December, at a value of $990m.
According to data posted on the Central Bank’s website, the bank accepted 16 of those offers at the same offering value. The lowest interest rate was 4.59%, the highest rate was 4.6%, and the average rate was 4.598%. This follows recent increases in the dollar’s global and local interest rates.
It is noteworthy that the CBE allows subscribing to these T-bills for both local banks and foreign institutions, with a minimum subscription of $100,000 and its multiples.
Banks subscribe to US dollar-denominated treasury bills in the same manner as they do for local currency T-bills, in which each bank submits its bid to the CBE, indicating the amount it will subscribe to in the bills and the interest rate it requests, and the bids are collected at the Central Bank for study and acceptance of the appropriate ones.
The rate of return on these dollar bills is determined by a number of factors, the most important of which are the amount of dollar liquidity in the market, alternative investment opportunities available to domestic and foreign banks and financial institutions, and the country’s credit rating.